How Sheltered International is Integrating Google Gemini

Image courtesy of Daniel Miksha

And Why It’s a Game-Changer for Freight Forwarders

Artificial intelligence is no longer a futuristic experiment for tech giants. Today, small businesses are beginning to harness powerful AI tools to streamline operations, reduce manual workloads, and increase efficiency. One of the most promising new tools leading this shift is Google Gemini.

Here at Sheltered International, we are proud to be on the forefront of adopting cutting-edge AI systems. Unlike early-generation AI systems that focused primarily on text generation, Gemini represents a major leap forward. Developed by Google, Gemini is a multimodal AI model capable of processing text, images, and complex documents with remarkable precision. For document-heavy industries, like freight forwarding, that capability is proving transformative.

What Makes Google Gemini Different?

Image courtesy of Charlotte Badran

Gemini stands out because of its advanced computer vision capabilities. The models are considered state-of-the-art when it comes to analyzing images and documents in granular detail. That means they interpret complex PDFs, scanned invoices, and unstructured documents with context and structure.

For startups and small operations, this opens the door to automating processes that were previously too nuanced for AI systems to handle reliably.

Gemini can be fine-tuned for specific business workflows, allowing companies to train the model to recognize industry terminology, formatting quirks, and regulatory requirements unique to their sector. This customization is what turns a powerful AI model into a true operational tool.

The Challenge: Manual Customs Documentation

As many readers are aware, international trade is document-intensive. When a shipment arrives, customs brokers are responsible for verifying commercial invoice data and ensuring that it is properly classified using the correct Harmonized Tariff (HTS) code.

In many cases, those invoices arrive as lengthy, unstructured PDFs. Extracting relevant data often requires hours of manual scanning, reformatting, and validation before the information can be entered into internal systems or spreadsheets.

For a small team handling high volumes of imports, this manual workflow becomes a significant operational bottleneck. The process is detailed, compliance-driven, and leaves little room for error.

How Sheltered International Is Using Gemini

With recent advancements and the release of Gemini 3 our team saw an opportunity to streamline the process of forms and other imports related tasks.

Here’s how our workflow now looks:

1. A shipment arrives with a commercial invoice, often in PDF form.
2. The fine-tuned Gemini model extracts relevant invoice data.
3. The model validates and reformats that data into an Excel spreadsheet.
4. Employees review the output before final customs classification.

“What the AI can do is just give us a huge leap forward before the customs broker comes in to ensure everything is classified correctly,” said founder Andrew Ciccarone in an interview with Inc.

For a small operation navigating the complexity of international trade documentation, Gemini has streamlined what used to be a painfully manual process. Instead of hours spent combing through dense documents, the team now receives a structured, organized first pass generated by AI.

Artificial Intelligence with Human Oversight

It’s important to note that Sheltered International isn’t handing the entire process over to AI. Employees still verify the output to ensure accuracy and compliance.

Ciccarone acknowledges that time savings are not yet dramatic because human review remains essential. However, as the fine-tuned Gemini model continues to improve, he expects productivity gains to increase significantly.

Why This Matters for Small Businesses

Google Gemini is emerging not just as a conversational AI tool, but as a serious operational asset. Its ability to analyze complex documents with precision is already reshaping workflows for forward-thinking startups.

The integration of Gemini represents a strategic move for us toward intelligent automation, one that enhances productivity while maintaining human oversight and compliance accuracy.

As AI models continue to evolve, small businesses that adopt and fine-tune tools like Gemini today will likely see substantial efficiency gains tomorrow. For companies navigating complex workflows and high volumes of documentation, Google Gemini may be one of the most powerful new tools available.

Stay in Control with Sheltered International

Global supply chains are constantly shifting. SiShips puts the shipper in control, offering efficient and cost-effective ways to transport your product.

To learn more about our personalized expertise and state-of-the-art software, contact us today.

Supreme Court Rules Against Trump’s Tariffs

What the Ruling Means for Importers and U.S. Trade

The Supreme Court of the United States has issued a landmark decision invalidating tariffs imposed under the International Emergency Economic Powers Act (IEEPA). The ruling marks a significant development in U.S. trade law and raises important questions for importers, customs professionals, and supply chain leaders across the country.

While the Court’s decision clearly addresses the legality of the tariffs themselves, it leaves unresolved the practical question that many businesses are now asking: what happens to the billions of dollars already collected?

Understanding IEEPA and Its Limits

IEEPA was enacted in 1977 to grant the President authority to respond to declared national emergencies involving foreign threats. Historically, it has been used to impose economic sanctions, freeze foreign assets, and restrict financial transactions.

It was not traditionally used as a mechanism for broad-based tariff policy.

The Trump Administration relied on IEEPA authority to impose certain tariffs tied to national emergency declarations. That use of authority was challenged, leading to this Supreme Court review.

The Court has now determined that IEEPA does not authorize tariffs in the manner they were imposed. In effect, the statute does not grant the executive branch the power to use emergency economic authority as a substitute for tariff-setting powers traditionally governed by Congress.

This is a statutory interpretation decision, not a policy judgment about tariffs generally, but its impact is substantial.

What the Supreme Court Actually Said

The ruling invalidates the IEEPA-based tariffs. However, it does not provide procedural guidance on how to unwind them.

Justice Brett Kavanaugh made this explicit in a notable observation:

“The Court says nothing today about whether, and if so how, the Government should go about returning the billions of dollars that it has collected from importers.”

That sentence is critical. The Court resolved the legality question. It did not address the administrative mechanics of refunds, protests, or reimbursement processes. In other words, the constitutional issue has been decided. The operational issue has not.

What This Means for Importers

From a financial standpoint, the stakes are significant. Billions of dollars were collected under the now-invalidated tariff authority.

However, several key questions remain unanswered:

• Will refunds be automatic or require formal claims?
• Will prior liquidation deadlines affect eligibility?
• Will Congress intervene legislatively?
• Will additional litigation determine next steps?

During a press conference following the ruling, Trump suggested the status of the money collected from tariffs was unclear and said, “I guess it has to get litigated over the next two years.” Additionally, in that briefing, Trump announced an additional 10% global tariff. 

All of that being said, until Customs and Border Protection (CBP) issues formal guidance, companies should avoid speculative filings or procedural moves that could complicate future eligibility. The companies best positioned in moments like this are those with clean audit trails and organized historical import data. From a compliance perspective, the focus should be on documentation readiness:

• Maintain detailed entry records
• Preserve payment confirmations
• Track impacted tariff line items
• Monitor CBP messaging and Federal Register notices

Broader Trade Policy Implications

This ruling reinforces a structural principle: tariff authority is not unlimited under emergency economic statutes.

The Trump administration and future administrations may still pursue tariffs under other legal authorities, such as Section 301 or Section 232, but the Court has clarified that IEEPA is not a broad substitute for congressional tariff powers.

For supply chains, that clarity may bring greater predictability over time. Emergency powers have limits. Statutory interpretation matters.

In an era where global trade policy can shift quickly, judicial boundaries help define where executive flexibility ends.

Practical Guidance for Businesses Right Now

The Supreme Court’s decision striking down IEEPA-based tariffs is a significant legal milestone. It clarifies the limits of executive authority under the International Emergency Economic Powers Act.

However, it does not yet clarify how the government will handle the billions collected from importers.

At this stage:

• No immediate filings are required.
• No refund process has been announced.
• No official CBP instructions have been published.

Companies should:

• Continue normal customs operations.
• Preserve documentation.
• Monitor official CBP communications.
• Stay in close contact with trade compliance advisors and customs brokers.

Premature action can be just as risky as inaction.

Stay in Control with Sheltered International

Global supply chains are constantly shifting. SiShips puts the shipper in control, offering efficient and cost-effective ways to transport your product.

To learn more about our personalized expertise and state-of-the-art software, contact us today.

Avoiding Detention and Demurrage Fees

A Proactive Guide for Shippers

When your containers hit the port, the race against the clock begins. Between vessel delays, documentation requirements, customs checks, and drayage schedules, shippers face countless moving parts. Unfortunately, detention and demurrage fees often show up when even one of those parts is out of sync. These charges add up quickly, increasing your total landed cost and slowing down your entire supply chain. 

There is good news. With the right preparation and visibility, most detention and demurrage fees are avoidable.

Understanding Detention and Demurrage

Before exploring prevention strategies, it’s essential to understand the difference between the two charges:

• Demurrage occurs when a container stays too long at the terminal before pickup.
• Detention occurs when a container is taken out of the terminal but not returned within the allowed free time.

Both are tied to timing, both can become expensive fast, and both can disrupt downstream operations if not managed proactively.

The True Cost of Delays

Detention and demurrage fees are rarely isolated expenses. When a container sits longer than expected, costs compound:

• Daily storage or equipment fees
• Increased labor costs for rescheduled receiving
• Production or inventory delays
• Missed delivery deadlines for customers or distribution partners

A delay of just one or two days can completely change your landed cost and introduce ripple effects across your supply chain. This is why proactive planning is essential.

Common Causes of Detention and Demurrage

Port Congestion and Terminal Backlogs

Major ports often experience vessel bunching, equipment shortages, or reduced labor availability, all of which can delay container availability and truck appointments.

Documentation Delays

Missing, incorrect, or late paperwork is one of the most common causes of demurrage. If a bill of lading isn’t released or customs documents aren’t submitted early, the container may be stuck waiting, even if it’s physically available.

Customs Holds and Inspections

Certain shipments get flagged for examination, and while some holds are random, others can be triggered by incomplete or inaccurate documentation.

Trucking & Drayage Constraints

Chassis shortages, driver availability, or appointment bottlenecks can make it difficult to retrieve containers within the allotted free time.

Proactive Strategies to Prevent These Fees

1. Improve Pre-Arrival Coordination

A strong pre-arrival process is often the biggest differentiator between a smooth pickup and an expensive delay. Double-check all documents, confirm arrival notices, and communicate dates with your receiving warehouse.

2. Strengthen Communication with Carriers and Forwarders

Knowing cut-off times, holiday schedules, and free time limits puts you in control of the timeline. Your logistics partners should proactively notify you of changes, especially when vessels are delayed or discharged early.

3. Optimize Your Drayage Strategy

Booking trucking in advance is essential. Work with trusted drayage partners who actively monitor ports and can adapt when terminal conditions shift.

4. Use Digital Tracking Tools

Real-time container tracking allows you to spot problems early. Automated alerts for holds, availability, and cutoff deadlines give your team a chance to act before fees accrue. The SiShips mobile app is an innovative solution for modern shippers and provides transparency at the touch of a button.

5. Plan for Customs Contingencies

Even well-prepared shipments may be selected for inspection. Pre-clearing cargo where possible and maintaining thorough compliance documentation can significantly reduce processing delays.

6. Maintain Flexible Warehouse & Labor Scheduling

Your receiving team should be ready to unload containers promptly. This is something that demands extra attention during peak seasons or when vessels bunch. Extended receiving hours can be the difference between staying on schedule and paying detention. 

Image courtesy of Shunya Koide / Unsplash

Understanding Free Time and Negotiating Better Terms

Carriers provide a set amount of free time before detention or demurrage begins. This varies depending on the trade lane, port, and carrier. If you’re shipping high volume, negotiating extra free time may be possible. Long-standing relationships and consistent lane volume often give shippers stronger leverage for these discussions.

A skilled freight forwarder acts as an extension of your operations team by monitoring vessel schedules and delays; managing customs documentation; tracking container availability and free time; coordinating drayage, chassis, and warehouse timing; and providing early warnings when timelines shift

This level of oversight helps shippers make timely decisions and avoid unnecessary charges.

Final Checklist for Shippers

A quick, repeatable process can prevent thousands of dollars in fees:

• Verify all documentation before vessel arrival
• Track containers daily
• Understand your free time windows
• Schedule drayage early
• Prepare receiving teams in advance
• Maintain clear communication with logistics partners

Stay in Control with Sheltered International

Global supply chains are constantly shifting. SiShips puts the shipper in control, offering efficient and cost-effective ways to transport your product.

To learn more about our personalized expertise and state-of-the-art software, contact us today.

Using the ACE Portal for Potential Tariff Refunds

What Importers Need to Know Now

Importers across the U.S. are watching closely as the Supreme Court of the United States considers the legality of tariffs implemented last year. While no final decision has been issued yet, one thing is already clear: how tariff refunds will be issued has changed, and importers who are not prepared could face delays if refunds are authorized.

If your company has paid tariffs that may be subject to reversal, now is the time to understand the ACE Portal, upcoming deadlines, and how these changes affect customs compliance and cash flow.

Why Tariff Refund Readiness Matters

The Supreme Court is currently weighing whether the tariffs first imposed by the Trump administration in 2025 are legal. As of this writing, on Jan. 13, 2026, no announcement has been officially made. President Trump continues to announce more tariffs in the interim, including additional 25% tariffs on any country “doing business” with Iran. The decision, in either direction, will have a sweeping effect on domestic and international economies. 

A tariff reversal can result in significant refunds, especially for importers with high-volume or long-term supply contracts. However, eligibility alone does not guarantee timely repayment. U.S. Customs has updated its refund delivery process, and importers who do not adapt may experience unnecessary delays. This is not simply an administrative update. It is a compliance and financial planning issue that impacts how quickly funds can be returned to your business.

According to guidance from U.S. Customs and Border Protection, Customs will no longer issue paper refund checks after February 6. Historically, many importers received tariff refunds by mail, but that option is being phased out.

Going forward, refunds will be issued electronically via ACH, and participation requires access to the Automated Commercial Environment (ACE) Portal. If an importer is not registered and properly set up in ACE, refund processing may be delayed even if the underlying tariff decision is favorable.

What is the ACE Portal?

The ACE Portal is Customs’ secure online system that allows importers to manage trade-related information, including:

• Importer of Record data
• Entry and compliance records
• Financial transactions, including ACH payments and refunds

Many importers already interact with ACE indirectly through their customs broker. However, direct account access is now critical for receiving tariff refunds electronically.

The February 6 Deadline Explained

Importers have until February 6 to establish or update their ACE Portal account to ensure eligibility for ACH-based tariff refunds. After this date, Customs will no longer issue physical checks, creating potential complications for companies that have not completed the setup process.

Missing this step does not necessarily disqualify an importer from receiving a refund, but it can slow down payment timelines at a moment when Customs may already be handling a surge in refund activity.

If tariffs are overturned, Customs could see a large influx of refund claims in a short period of time. Importers who are properly registered in ACE and compliant with current requirements will be positioned to receive refunds more efficiently.

It is also wise to review past entries that may be affected by a tariff decision so internal teams are not scrambling once guidance is issued.

Stay In Control with Sheltered International

Global supply chains are constantly shifting. SiShips puts the shipper in control, offering efficient and cost-effective ways to transport your product.

Learn more about our personalized expertise and state-of-the-art software, contact us today.

Co-Founder Michelle Rockwell Joins “The Unshakeables” Podcast

In Discussion with Ben Walter and Tino McFarland

Sheltered International co-founder Michelle Rockwell was a guest on the latest episode of The Unshakeables [click here to listen], a Chase for Business podcast on the iHeartRadio network. She was joined by Tino McFarland, CEO of McFarland Construction, for an engaging and entertaining conversation about the current challenges facing small businesses. Through her personal experiences with freight forwarding, she sheds insight on the realities of working through tariffs, how inflation affects operations, and more.

“I personally thought it was a good chance to give people a feel for really what’s going on out there right now,” says host Ben Walter, reflecting on the interview. “We spend a lot of time [on the show] telling stories…[this] was a good chance to talk about where we are as an economy.”

Diving into the Realities of Tariffs

Speaking on how recent tariffs have affected importers, Michelle characterised clients as understandably conservative and careful. “There’s a lot of uncertainty with the importers of record. We have seen business slower than normal this time of year because ultimately, the end consumer has to pay those additional costs. It’s inevitable. We try to explain and we sympathize with them. We completely understand.”

“And unfortunately, we’ve had those hard conversations because what happens is sometimes those things go into effect and there’s no backdating. So it doesn’t matter when it departed, those tariffs are going to take effect. And it doesn’t matter if your cargo was already on the water and you were only expecting to say pay 20% or 30%. Now tomorrow you’re going to pay 55%. And it’s hard for them to swallow. And I get it.”

These difficulties are strongly felt across the board, especially when it comes to the de minimis exemption. “If you’re ordering, say clothing, it used to be that they could come into the country and there was no duty charge because the value was so little. [Importers used] a Section 321 entry and there was no duties and taxes. They can no longer do that. Now there’s a hundred-dollar duty automatically on any small package like that. Going from free to a hundred, that’s a lot, especially if you’re talking you bought a $20 dress or top whatever. It’s not worth it any longer. As a result, many clothing and textile retailers had to shut down.”

How SiShips Succeeds as a Small Business

Transparency, communication, and offering white glove service are key offerings from SiShips for every client, regardless of size. “The difference is, when you call us, we’re going to pick up that telephone, and we’re going to answer you. Our clients come to us because they need a certain level of service, and that’s what they expect.”

“We tell [our clients] what we know. Most of the time with tariffs, we’ve heard what they’ve heard. But until it’s printed in the Federal Register for us, it’s not a fact. We’re transparent with them, because we don’t know what to tell them or how to tell them to run their business. That’s obviously up to them.”

I’m Every episode of The Unshakeables ends with the same question from Ben Walter: “What’s one piece of advice you have for aspiring or current small business owners who are trying to make it out there?”

Michelle was ready with her answer from her decades of experience. “You have to partner with people who are your opposite. You’re going to have to stay positive and work hard, but you’re going to have to work together.”

Listen to the Full Episode Now

Check out the full episode now for all of Michelle’s insights, and a few laughs along the way, available on Apple Podcasts, Spotify, or wherever you listen.

Image courtesy of Ian Hutchinson / Unsplash

The Pivotal Case Will Have Major Implications on Presidential Authority and International Shipping

When the Trump Administration announced sweeping new tariffs under the International Emergency Economic Powers Act (IEEPA), many businesses were left wondering: Can a president really use emergency powers to reshape trade policy? In the months since, the “Liberation Day” tariffs have been paused and unpaused and deemed illegal by federal courts. As of November 2025, the tariffs remain in effect while the case is appealed.

The question of authority has now reached the Supreme Court via “Learning Resources, Inc. v. Trump”, a case that could redefine the limits of executive authority in U.S. trade law and determine whether billions in tariffs were lawfully imposed. After arguments were heard in early November, industry experts, politicos, and even the President himself have wasted no time in reacting to the potential decision. However, no decision will become official for several weeks or possibly months.

The Rise of “Emergency” Tariffs

The case stems from a series of tariffs President Donald Trump imposed on a wide range of imported goods, citing national emergency powers under the IEEPA. Traditionally, U.S. tariffs are enacted under laws like the Trade Act of 1974 or Section 232 of the Trade Expansion Act of 1962, both of which explicitly authorize the president to adjust tariffs in response to specific findings, such as unfair trade practices or threats to national security.

Image courtesy of Marek Studzinski / Unsplash

The IEEPA, by contrast, was passed in 1977 to allow the president to regulate economic transactions during national emergencies, primarily as a sanctions tool to “block,” “freeze,” or “prohibit” specific economic activities involving foreign adversaries. It has been used for decades to manage targeted sanctions against hostile regimes, not to impose general import duties.

In 2025, Learning Resources, Inc., a Chicago-based educational toy manufacturer, filed suit against the Trump Administration. The companies argued that the tariffs had no legal foundation in the IEEPA, which they claim does not authorize the imposition of import duties. Their case made its way through the lower courts and is now before the Supreme Court.

At the core of “Learning Resources, Inc. v. Trump” are two questions: 

1. Does the IEEPA authorize the President to impose tariffs on imported goods?
2. If so, does such broad delegation of power violate the Constitution’s separation of powers?

The Plaintiffs’ Argument: IEEPA Isn’t a Trade Tool

Learning Resources and the other companies involved argue that the wording and purpose of the IEEPA do not give the president the power to set tariffs.

They say that while the IEEPA allows the president to “regulate importation or exportation” during a national emergency, the word “regulate” does not mean “tax” or “charge duties.” In the past, Congress has always used clear terms like “tariffs” or “duties” when it wanted to give a president that kind of power.

They also point out that the IEEPA was created to handle targeted sanctions, such as blocking trade with specific countries, not to make large-scale changes to trade policy. The history of the law and how it has been used in the past both support this view.

Finally, the companies argue that letting the president use the IEEPA to create global tariffs would give too much power to one person without proper direction from Congress. They believe this goes against the Constitution and the limits the Supreme Court has set on presidential authority.

In short, Learning Resources believes the IEEPA should not be used as a way for the president to bypass Congress’s power to control trade and taxes.

The Government’s Argument: Tariffs Are “Regulation of Importation”

The Trump Administration, along with the Department of Justice, argues that the wording of the IEEPA gives the president enough authority to act.

They say the law allows the president to “regulate importation or exportation” during a national emergency, and that tariffs are simply one way to regulate trade. By using tariffs, the government can influence trade and protect the country’s economic interests.

They also point out that courts have long viewed tariffs as part of the government’s power to control foreign trade. The administration believes Congress wrote the IEEPA broadly on purpose so that presidents would have flexibility to act quickly in emergencies.

According to the White House, problems like global economic instability, unfair trade practices, and reliance on foreign supply chains made it necessary to declare a national emergency and take immediate action. They argue that Congress would not have been able to respond fast enough on its own.

If the Court agrees with this argument, it could greatly increase the president’s power to change trade policy without needing Congress’s approval.

Image courtesy of Nazarizal Mohammad / Unsplash

Business and Industry Reactions

The reaction from the business community has been strong and divided.

1. Importers and Manufacturers

For companies like Learning Resources, the tariffs increased costs dramatically. The firm’s CEO stated that the uncertainty caused by fluctuating tariffs forced them to cancel expansion plans and delay major investments. Many small and mid-sized businesses, particularly those reliant on imported materials, claim they’ve been caught in the crossfire of unpredictable trade policy.

2. Retailers and Consumers

Retailers warn that higher import duties ultimately mean higher prices for consumers. Educational supply companies, electronics manufacturers, and toy producers say that the costs are passed through the supply chain, contributing to inflationary pressure in consumer markets.

3. Policy Analysts and Trade Experts

Trade analysts caution that a ruling upholding the administration could set a precedent allowing future presidents of any party to impose tariffs unilaterally on virtually any goods, at any time, under the guise of a national emergency.

Meanwhile, legal scholars have filed amicus briefs supporting both sides, recognizing the case as one of the most significant tests of executive power in modern trade law.

4. President Trump

President Trump offered his own unique view on the case. He claimed, in a post on Truth Social several days after arguments, that “unwinding” the tariffs “would truly become an insurmountable National Security Event, and devastating to the future of our Country – Possibly non-sustainable!” 

Fox Business reported the U.S. collected more than $213 billion in tariff revenue through September 2025. U.S. importers counter Trump’s opinion by pointing out it would be relatively straightforward to return the money from tariffs, since U.S. customs paperwork includes detailed information on all shipments and payments.

A Case that Could Redefine Presidential Power

While the main focus of “Learning Resources, Inc. v. Trump” is understandably about the process of international trade and the costs passed onto consumers, it is really about the limits of presidential authority in economic policy. The Court’s decision will determine whether emergency powers can be used to reshape trade relationships and impose broad economic measures without explicit congressional action.

For importers, manufacturers, and global businesses, the stakes are enormous. For policymakers and constitutional scholars, the case may become a landmark decision in defining how far the “emergency state” can reach into the nation’s economic life.

As the Supreme Court prepares to decide, companies across America are watching closely and waiting to see how the balance between Congress and the President will be redrawn for decades to come.

Stay in Control with Sheltered International

Global supply chains are constantly shifting. SiShips puts the shipper in control, offering efficient and cost-effective ways to transport your product.

To learn more about our personalized expertise and state-of-the-art software, contact us today.

Image courtesy of Frank McKenna / Unsplash

Demystifying Freight Insurance: What Every Shipper Needs to Know to Protect Their Cargo

Shipping cargo across the country or across the world involves countless moving parts. There’s warehouse handling. There’s customs inspections. There’s weather. No matter how carefully a shipment is planned, things can go wrong. That’s where freight insurance steps in.

Freight insurance provides peace of mind and financial protection for your goods in transit. Let’s break down what it is, how it works, and why it’s a must for every shipper, whether you’re sending your cargo by land, air, or sea.

What Is Freight Insurance?

Freight insurance, sometimes called cargo insurance, is a policy that covers the value of your goods against loss, theft, or damage while they’re in transit. It applies to domestic and international shipments and ensures that if something happens to your cargo, you’re compensated based on its declared value.

It’s important to understand that freight insurance is not the same as carrier liability. Carriers are only responsible for damage or loss that they directly cause and even then, compensation is often limited. For example, ocean carriers typically cover only a few dollars per pound, regardless of the cargo’s actual value. That means if your $50,000 shipment of electronics is damaged, you might receive only a fraction of its worth.

Freight insurance fills that gap, ensuring you’re not left covering a significant loss.

Image courtesy of Andy Li / Unsplash

How Freight Insurance Works

When you purchase freight insurance, you’re essentially transferring the financial risk of cargo loss or damage to an insurer. Here’s what happens behind the scenes:

1. You declare your shipment’s value. Typically, the total value is the commercial invoice value, plus the cost of freight and sometimes a percentage for anticipated profit.
2. Your insurance premium is calculated based on factors like cargo type, transport mode, route, and risk exposure.
3. Your policy goes into effect once the shipment leaves its origin and remains active until delivery at its final destination.
4. If a loss or damage occurs, you can file a claim with the insurer, supported by documentation such as a bill of lading, photos, and a damage report.

The amount you recover depends on your coverage type, claim evidence, and declared value. A freight forwarder like Sheltered International helps streamline this process by handling documentation, coordinating with carriers, and ensuring your claim is processed efficiently.

Carrier Liability vs. Freight Insurance

A common misconception among shippers is assuming that carriers automatically insure their cargo. In reality, carrier liability is limited, and it’s not true insurance.

Image courtesy of Acton Crawford / Unsplash

Common Misconceptions About Freight Insurance

Let’s clear up a few myths that often cause confusion:

“My carrier automatically covers my shipment.”

Most carriers include only basic liability coverage, which is not full insurance. It may exclude natural disasters, rough handling, or theft, and only applies when the carrier is clearly at fault.

“Insurance is too expensive for smaller shipments.”

Freight insurance is typically very affordable, often a small percentage of your cargo’s total value. For most shippers, it’s a small price to pay for complete peace of mind.

“I only need insurance for international freight.”

While long-haul shipments carry more risk, domestic freight can also be damaged in transit or while loading/unloading. Even short routes can benefit from proper coverage.

Types of Freight Insurance Coverage

There are several forms of freight insurance, and knowing the difference ensures you choose the right one for your operation.

1. All-Risk Coverage

This is the broadest and most comprehensive form of insurance. It covers loss or damage from most external causes, including theft, weather events, mishandling, or accidents. Most importers and exporters choose all-risk coverage for high-value or fragile goods.

2. Total Loss Coverage

This policy protects you only if your shipment is completely lost. For example, a shipment is considered a “total loss” if a container falls overboard or a truck is destroyed in an accident. It’s often used for bulk commodities or lower-value shipments.

3. Named Perils Coverage

Sometimes call Free from Particular Average (FPA) this policy covers only risks specifically listed in the agreement, such as fire, collision, or natural disasters. It’s less expensive but offers limited protection.

The Role of Incoterms in Insurance Responsibility

Your shipping contract likely includes Incoterms, which determine who is responsible for transport, customs, and insurance at each stage. Sometimes, insurance is required as part of the Incoterms.

• CIF (Cost, Insurance, and Freight): The seller must provide minimum insurance coverage until the goods reach the destination port.
• FOB (Free On Board): The buyer assumes responsibility, including insurance, once the goods are loaded onto the vessel.

How to Choose the Right Freight Insurance Policy

Every shipment is different. Before purchasing coverage, evaluate the following factors:

• Cargo Type and Value: Fragile or high-value goods require comprehensive protection.
• Transport Mode: Air freight has different risks than ocean freight, which are poles apart from train and truck freight.
• Route and Destination: Consider weather, political stability, and regional theft rates. Even heavily trafficked routes like the Suez Canal can have issues.
• Packaging Quality: Proper packaging reduces claim risk and may lower premiums.
• Experience of Your Freight Forwarder: Partner with an expert who can assess your shipment risk and recommend suitable coverage.

At Sheltered International, we review all of these variables to help clients select the most appropriate policy for their unique supply chain.

Stay in Control with Sheltered International

Global supply chains are constantly shifting. SiShips puts the shipper in control, offering efficient and cost-effective ways to transport your product.

To learn more about our personalized expertise and state-of-the-art software, contact us today.

Image courtesy of GVZ 43 / Unsplash

The State of US Shipbuilding

The US shipbuilding industry stands at a pivotal moment. Once a leader in maritime innovation, America has fallen behind global competitors, particular in commercial ship productions. Limited domestic investment and heavy reliance on foreign fleets have raised concerns about economic competitiveness and supply chain resilience.

In April 2025, the White House announced an executive order with the goal of “Restoring America’s Maritime Dominance”. Through the executive order, a number of government agencies were tasked with creating a Maritime Action Plan (MAP) to address the current challenges facing US shipbuilding. The initiative emphasizes modernizing US shipyards, expanding capacity for commercial vessel production, and supporting workforce development to ensure a steady pipeline of skilled labor. Beyond strengthening national security, the plan’s goal is to reinvigorate shipbuilding as a driver of economic growth by creating high-paying jobs, bolstering coastal communities, and positioning the US to compete more effectively in global trade.

China’s Ascendancy and US Reliance on International Partners

China built more commercial vessels by tonnage in 2024 than the United States has built in entirety since WW2, as reported by the Center for Strategic & International Studies. For decades, America’s shipbuilding strength has been concentrated in naval construction, while its capacity for commercial ship production has steadily eroded.

As a result, the United States has increasingly turned to other countries to acquire the commercial vessels it needs to move goods around the world. Today, a large share of the container ships, tankers, and bulk carriers that keep American trade flowing are built in Asia or Europe, not at US yards. While this reliance has kept costs down for shipping companies, it has also left the nation dependent on foreign-built fleets to support its economy.

Analysts warn that this imbalance carries long-term risks. Without a robust domestic commercial shipbuilding industry, the US is vulnerable to supply chain disruptions, higher costs, and limited control over the ships that underpin global commerce.

Image courtesy of Jan Libbertz / Unsplash

Shipbuilding Provides a Massive Local Economic Impact

Shipbuilding has a big impact on local communities. The industry supports over 110,000 American jobs and contributes roughly $37.3 billion each year to the economy. Shipyard workers earn roughly 50% more than the average private-sector wage, providing stable, middle-class opportunities in an era when many manufacturing jobs have disappeared.

The reach of shipbuilding extends beyond the shipyards themselves. Each vessel requires parts and expertise from a wide network of suppliers, from steel producers and equipment manufacturers to engineering firms and logistics providers. This ripple effect supports thousands of additional jobs in related industries, strengthening local economies far beyond the waterfront.

For many communities, shipbuilding is also a matter of identity. Coastal towns in Maine, Virginia, the Gulf Coast, and the Pacific Northwest were once bustling centers of maritime activity. Bath Iron Works in Maine, for example, has been building ships for more than 130 years and remains one of the region’s largest employers. In Virginia, Newport News Shipbuilding (the largest shipyard in the United States and one of the biggest in the world) employs tens of thousands and sustains a wide network of local businesses. Along the Gulf Coast, facilities in Mississippi and Louisiana serve as major commercial and naval shipbuilding hubs, while on the West Coast, shipyards in San Diego and Seattle continue to support both defense and commercial projects.

Renewed investment in the industry has the potential to change the trajectory for these regions. By modernizing shipyards and investing in workforce training, the US can not only compete more effectively in global trade but also breathe new life into communities that helped build its maritime legacy. 

Image courtesy of Raimond Klavins / Unsplash

Prioritizing Military Readiness

Also in President Trump’s executive order is an emphasis on the military benefits of support for the shipbuilding industry. Various sections include a desire to modernize the Merchant Marine Academy alongside establishing control of the Arctic waterways, a long time goal of the US government, and creating an inactive reserve fleet. These parts of the executive order fall under the direction of the Secretary of Defense, instead of the Secretary of Labor or Secretary of Transportation as other sections do.

Additionally, a Maritime Security Trust Fund will be funded by “new or existing tariff revenue, fines, fees, or tax revenue”.

What Progress Has US Shipbuilding Seen from the Maritime Action Plan?

Since the plan was introduced in April, federal funding has begun flowing into shipyard upgrades and workforce training programs aimed at modernizing facilities and attracting new talent. For example, Newport News Shipbuilding in Virginia has received support to expand its training pipeline for welders and shipfitters, while Bath Iron Works in Maine is using federal investment to adopt new digital ship design technologies that streamline production.

Beyond traditional naval hubs, new partnerships are forming to extend America’s commercial shipbuilding capacity. Along the Gulf Coast, shipyards in Mississippi and Louisiana are exploring collaborations with private shipping companies to increase the construction of container ships and offshore support vessels. 

The Maritime Action Plan is also encouraging supply chain development. Grants have been directed toward domestic steel and component suppliers to ensure shipbuilders can source critical materials within the US rather than relying on overseas providers. 

While the US still has a long way to go to catch up to China’s sheer output, these efforts mark a turning point. For the first time in decades, the focus is not just on maintaining naval strength but also on building a competitive commercial shipbuilding industry that can support trade, create jobs, and reduce dependence on foreign-built vessels. Together, these steps signal an important shift toward restoring America’s maritime strength and ensuring the industry is positioned for long-term growth.

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U.S. and European Union Announce Trade Agreement Details

Clarity on Ever Evolving Tariffs

Following the summit in Turnberry, Scotland at the end of July, the United States and the European Union have released information on an updated trade agreement. Stock markets rose upon the announcement. 

The areas where the new framework will have the largest impact are the automotive industry (tariffs on European cars have been lowered from 27.5% to 15%), the pharmaceutical industry (drugs like Ozempic will be capped at 15% tariffs instead of the 250% threatened by Trump), and the aviation industry (which will avoid tariffs in both directions). Additionally, the EU will purchase hundreds of billions of dollars in US energy, lessening their reliance on Russia.

Initial estimates forecast a decrease of 0.5% to the EU’s GDP. However, some or all of the extra cost paid by US importers will likely be passed onto consumers.

Decoding the New Tariff Rates

The joint statement covered a wide breath of goods and products. The European Union has agreed to eliminate tariffs on “all U.S. industrial goods” and to “provide preferential market access” for U.S. seafood and agricultural goods. Also covered was a 15% cap for tariffs on pharmaceuticals, semiconductors, lumber and automobiles. Notably, the 15% cap does not include steel and aluminum; instead, the US and the EU “intend to consider the possibility to cooperate” to secure supply chains with each other. 

This agreement may prove to be a mixed bag for the United States and, specifically, the automotive industry. One of Trump’s goals is to boost American car production, which was harmed by the European Union putting a 10% tariff on all US made cars. The current tariff has been adjusted to 2.5%, which is poised to increase demand in Europe for brands like Ford and General Motors. However, many American car manufacturers produce vehicles in Canada and Mexico which are still under the 25% Liberation Day tariff. That means many cars from the European Union will be less expensive than American versions, due to the comparatively lower tariff of 15%. Car manufacturers have announced investments in new US-based plants, but those will not come online for several more years. 

What to Keep an Eye On

This agreement is a step in the right direction, as evidenced by the international market reaction. Even still, Trump has shown little regard for agreements, preferring to send out surprise missives from his social media account. The Trump administration has also quietly expanded products covered by the 50% steel and aluminum tariffs.

One of the pain points of the negotiation for the European Union was the delicate position of Ukraine. In the war against Russia, Ukraine and the EU have been reliant on US support. The EU has an ability to press more economic levers against Trump, but fear of upsetting him and denying support to Ukraine reportedly kept those in check. This could have an effect on the final agreement in the coming months as the war develops, especially with regards to energy and defense equipment (both named in the joint statement).

A New Bloc on the Horizon?

Several of the European leaders expressed their disapproval with the agreement. “It is a dark day when an alliance of free peoples, brought together to affirm their common values and to defend their common interests, resigns itself to submission,” said Francois Bayrou, the Prime Minster of France.

German Chancellor Friedrich Merz went a step further to say, “if the World Trade Organization (WTO) is as dysfunctional as it has been for years and apparently remains so, then we, who continue to consider free trade important, must come up with something else.” That something else could be an international accord between the European Union and the Comprehensive and Progressive Agreement for Trans-Pacific Partnerships (CPTPP) agreement.

The CPTPP is a trade agreement between countries around the Pacific Ocean (including Australia, Canada, Japan, Mexico, Peru, Singapore) and the United Kingdom. Keeping in mind that the United Kingdom is not part of the European Union, a merger of these two existing blocs would carry serious weight in negotiations. Talks between the EU and the CPTPP are planned for later this year.

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Liberation Day Tariffs Pause to Expire on August 1

White House Extends Original 90-Day Deadline

In April 2025, President Donald Trump announced a series of sweeping reciprocal tariffs that affected practically every country in the world. After a week of bipartisan backlash and market turmoil, Trump announced a 90-day pause on the double-digit tariffs. This self-imposed deadline was set to expire on July 9. On July 7, the White House shared that they would begin sending letters about the new tariff rates to nations who have not yet agreed to new trade deals with the United States. Those new tariff rates will not go into effect until August 1. 

The stated goal of the initial 90-day window was to give countries the opportunity to negotiate trade deals. At the beginning of July, only the United Kingdom and China agreed to new trade agreements with the United States. Trump and British Prime Minister Keir Starmer announced their agreement at the G7 Summit in June, which lowered the automobile tariff for the United Kingdom to 10% compared to the standard 25% for other countries in that industry. Both the United States and Chinese governments confirmed the existence of a framework, without offering up many details.

Countries Affected by Liberation Day Tariffs

Apart from the United Kingdom and China, there is little traction between the United States and other countries, including key trading partners like India and Japan. Trump mentioned “We’ve talked to many of the countries, and we’re just going to tell them what they have to pay to do business in the United States, and it’s going to go very quickly,” during a news conference ahead of the deadline.

The exact tariffs range wildly, with a baseline of 10% across the board and a heavier focus on nations that have a trading surplus with the United States. Upon the initial Liberation Day announcement, the effective tariffs paid by United States citizens jumped from 3% to 25%. Even with the pause, that number is now around 15% mainly due to tariffs on the automobile and steel industries that are still in effect.

Click on the image to view the full chart at via Holland & Knight

Will the Reciprocal Tariffs Deadline Be Extended?

White House Press Secretary Karoline Leavitt talked down the severity of the deadline saying that the July 9 date was “not critical” and “perhaps it could be extended, but that’s a decision for the president to make.” Other White House officials, like White House Council of Economic Advisers chairman Stephen Miran and Treasury Secretary Scott Bessent, have echoed these statements and seem optimistic about the likelihood of a beneficial outcome. Those public comments at the end of June were clearly in line with the President’s thinking, but it remains to be seen how firm the new August 1 deadline is.

The Trump administration revels in its unpredictability, using traditional and non-traditional forms of communication to quickly announce new positions. However, Trump has a track record of succumbing to stock market pressure—the week of massive stock market drops were what initially led to the current pause—and previous deadlines have been pushed back multiple times following the initial announcement.

Click here to view the full chart of ongoing negotiations via Holland & Knight.

How to Prepare Strategically and Protect Your Business

For importers, a reduction or removal of tariffs could immediately lower costs and improve profit margins. This could also shift sourcing decisions back toward Chinese suppliers who were previously priced out due to high duties. However, changes in trade policy often lead to short-term volatility. Supply contracts, shipping timelines, and customs classifications may all need to be reviewed or adjusted.

For exporters, the situation is more complex. Some retaliatory tariffs imposed by foreign governments may also be lifted, improving access to global markets. Unfortunately, the lack of symmetry in trade negotiations means that exporters should remain cautious and monitor developments closely.

In either case, businesses engaged in cross-border shipping must prepare for uncertainty. Supply chain flexibility, contract agility, and expert compliance support will be essential in the weeks ahead.

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Global economies shift every day. SiShips puts the shipper in control, offering efficient and cost-effective ways to transport your product.

To learn more about our personalized expertise and state-of-the-art software, contact us today.